Explanation:
Income Elasticity of Demand(IED)= Percentage change in quantity demanded/ Percentage change in income
-Percentage change in Q:
%Change in quantity demanded= (q2-q1/q1) = (10-8)/8= 0.25
-Percentage change in Income:
%Change in income= (i2-i1/i1) = (4,500-4,000)/4,000= 0.125
IED= 0.25/0.125= 2
This indicates that the Shaffers are very sensitive to changes in income when it comes to eating out. Which means that changes in income will change significantly the number of times they eat out.
2. Restaurant meals are normal goods, in this case, because when income rises, they ate more in restaurants, then the units consumed for this good increase too.
Answer:
Redlining
Explanation:
The redlining is the practice of systematic denial in the United States and the Canada.
In redlining the persons belonging to the specific geographical locations or dealing the specific geographical area are denied by the bank or other sectors to lend money or provide services along the region or in the neighborhood.
Answer:
$31,584
Explanation:
Pouch Corporation
Direct Labor Budget June July Total
Required production in units
2,100 1,900
Direct labor-hours per unit
0.84 0.84
Total direct labor-hours needed
1,764 1,596
Direct labor cost per hour
$9.40 $9.40
Total direct labor cost
$16,581.60 $15,002.40 $31,584
Required production in units×Direct labor-hours per unit =Total direct labor-hours needed
Total direct labor-hours needed×Direct labor cost per hour =Total direct labor cost
$16,581.60 + $15,002.40 = $31,584
Answer:
$11880
Explanation:
Given that:
In a local Honda Dealership;
Last year, your dealership earned a record profits of $1.5 million
according to the local Chamber of Commerce, your earnings were 10 percent less than either of your competitors.
The Price Elasticity of demand E = - 4.5
Marginal cost of a midsized automobile = $11,000
Let assume that In your market, you compete against two other dealers
From The above given data , the objective is to determine the What price should you charge for a midsized automobile if you expect to maintain your record sales.
So; in order to achieve that ; we consider the scenario of an Oligopoly market by using the markup formula for homogeneous product Cournot Oligopoly which can be represented as:
P = 1.08 × 11000
P = $11880
Hence. the price you should charge for a midsized automobile if you expect to maintain your record sales is $11880
Answer:
The correct answer is B.
Explanation:
Giving the following information:
One year ago, Deltona Motor Parts deposited $16,500 in an investment account to buy new equipment three years from today. Today, it is adding another $12,000 to this account. The company plans on making a final deposit of $20,000 to the account one year from today.
To calculate the future value of the investment, we need to use the following formula:
FV= PV*(1+i)^n
First deposit= 16,500*(1.045^4)= 19,676.56
Second deposit= 12,000*(1.045^3)= 13,694
Third deposit= 20,000*(1.045^2)= 21,840.5
Total= $55,211.06
